UAE LABOUR LAW FEDERAL LAW NO. The notice period can be anything between one to three months depending on the type of contract(limited/unlimited). Article 127 of UAE labour law specifically states that when an employee performs a role that allows him to become familiar with confidential information, the employer may put in place an agreement with provisions that prevent an employee from working with a competing business after leaving service – but there are limitations. Each of which shall be reviewed in detail as follows: End of Service Benefit/ Bonus. A lifelong explorer and learner, Anala believes in giving back, and volunteers with the Bright Spark Education program at the NGO Youngistaan Foundation, where she opens up children's minds to the innumerable possibilities of a happy and successful life! © Al Nisr Publishing LLC 2020. Anala is a young and spunky guru on financial matters, who tells you like it is; everything from managing debt to managing savings accounts. End of service pay is termed as gratuity pay and an employee has to complete more than one year of service in a company to be eligible for the gratuity pay. In case, if an employee is terminated then the employer may ask him to render his service during probation or compensate his pay before he leaves the workplace. Your notice period is counted from the day of resignation or termination. Moreover, a well-written professional resignation letter can help you end things on good terms with your employer. Resignation is not allowed during the contract period as it violates the terms. (May 2020). All you need to know about Jebel Ali Free Zone, Certificate Attestation Services in Dubai, UAE, All you have to know about eNetwasal Services, Know about Dubai Labor contract in the UAE. Unlimited contracts give employees the right to terminate or resign from the job contract with a one-month written notice. Generally, an employer cannot pressurize an employee to exceed the notice period beyond 3 months. We don't decide any quotes, rates, or fees on any of the financial products listed on MyMoneySouq. 8. Check: How to renew an Indian Passport in Dubai? How to renew an Indian Passport in Dubai? At no time is your employer allowed to keep your passport, unless visa renewal or cancellation is in progress. You have to serve notice period when resigning, and this will usually between one month and three months based on your contract. If you're on a limited contract, however, resignation is a violation of your contract. The employer may also terminate on notice provided there is a … 8 for the year 1981, otherwise known as the Employment Law. 8 Reasons why one should have a Savings Account, Can't I spend all the money? Decrees: Article ( 1 ) Even if the resignation was submitted by email, it is considered accepted from the date of submission. It may also state your latest pay or wage details if requested. If an employee believes that he has been dismissed illegally, he can complain to Ministry of Human Resources and Emiratisation. In arbitrary dismissal, employers are liable to compensate the employee for wrongful termination along with gratuity and other dues. 24/1981 dated 07/11/1981, and . Employers responsibility is to pay the charges for canceling visa and its process. The employee is not lawfully responsible to pay for the costs regardless of why/how the employment contract is terminated. What do you need to know about UAE Labor Laws? What do teenagers need to know about money? You, as an employee, are never required to reimburse your employer for visa costs at any time. Privacy Policy. Your dues and receivables differ based on whether you are terminated on account of redundancy (cost-cutting) or if you're terminated in what is considered arbitrary dismissal (wrongful termination). and Most of the employers will pressurize employees to give up their passports for guarantee or safekeeping. Article 120 of the UAE Labour lays out the reasons for which termination without notice is lawful. If you need to resign urgently, talk it out with your employer. Companies have been known to ask for installment-based deductions for visa costs from employees - this is illegal and punishable by law. Avoiding a labour ban upon resignation during probation period. Even if the resignation was submitted by … Federal Law no. The UAE labor resignation laws provide transparent instructions on employee rights. UAE Labour Law 6 Chapter II: Employment Of Workers Children And Women Section I: Employment of Workers Article 9 Work is an inherent right of the Nationals of the United Arab Emirates. The UAE Labour Law provides for two ways in which an employer can lawfully terminate an employee. When I got some free time, I read the UAE Labour Law and related clauses and the Law clearly has provided various measures under Article 131 and here is an excerpt: When you resign, your employer's acceptance or rejection of your resignation is not essential legally. Most shops... Smart way to compare Loans, Insurances, and Bank Accounts | Assistance in choosing the right financial product | Bring awareness on financial products, Bank Customer Care & Helpline contact details, The information provided on MyMoneySouq is for illustrative purposes only. No Gratuity without Completing Limited Contract: It is clearly mentioned in UAE LABOUR Law Article 138 that if employee has not completed his/her limited contract period as signed in agreement, he/she will not be eligible for any gratuity. If the worker is suspended by his fault, then the employer need not pay the travel charges even if it is quoted in the labor contract. Payment of gratuity pay depends on how long you have been employed for as well as your contract type - limited or unlimited. In case of termination, the employer might ask you to work during the notice period or pay you the salary for the period before letting you go. Both on your website and other media. As per Article 117 of UAE Labour Law, the employer and employee may terminate the employment contract with unlimited period, for a valid reason at any time after conclusion of the contract by written notice duly given to other party, thirty days (30 days) at least prior to termination. The employment relationship between employers and employees in the UAE is governed by the provisions of Law No. To find out more about the cookies and data we use, please check out our, Dear Reader, please register to read gulfnews.com, Password should have minimum 7 characters with at least one letter and number, Revealed: Over 8,000 jobs open in Dubai in one month; industries hiring include real estate, construction, hospitality, Career: 7 tips on how women can succeed in a tech job, Career: 7 things to know about your notice period in the UAE, UAE's Emirates, flydubai, Air Arabia roll out discounted tickets for flights from Dubai, Sharjah, Fashionably protected: Fashion law in the UAE, Fired or resigning? Based on the UAE Labour Law, you do not need your employer’s consent to resign from your job. Discounts on Traffic Fines – Ajman, RAK, Fujairah, Sharjah, Best Credit Cards in Dubai, UAE (December 2020) – Apply Online, 19 ways to make money online in Dubai, UAE, How to get discount on Abu Dhabi traffic fines? Under the UAE Labour Law an employee is entitled to “early termination compensation” of a minimum three months’ remuneration, including salary and allowances, (or the remainder of the term of the contract if the period remaining is less than three months ), if an employer seeks to terminate the contract prior to the end of the limited term. All the comments posted under MyMoneySouq official account are  not reviewed by the financial institutions. The laws imposed on employer and employee to safeguard them for haphazard dismissals and probation. Federal Law no. This website stores cookies on your computer. All rights reserved. If the employee is terminated on the basis of redundancy employer will not have to pay any such dues. UAE Labor Law states that you can only terminate a fixed contract if you satisfy the following considerations: The contract was not renewed – and is hereby terminated by the employer The employer and the employee mutually agree to terminate the contract during the term of the agreement Federal Law no. Visa costs and sponsorship costs are the sole responsibility of the employer and regardless of how or why your contract is terminated, you are not legally liable to pay for this. Issued on 20/4/1980. Those working in Dubai or other Emirates must be aware that serving a notice period is required under the UAE labor law, hence writing a resignation mail is quite important. UAE Labour Law stipulates a minimum notice period of 30 days or one month. As amended by Federal Law no . If an employee is terminated haphazardly then the employers will have to pay gratuity and other dues for the wrongful termination of the employee. The laws imposed on employer and employee to safeguard them for haphazard dismissals and probation. This relationship is usually regulated by way of a contract of employment that sets out the rights and obligations of each party in light of the provisions of the Employment Law. Only for the visa renewal/cancellation, an employer is allowed to retain an employee’s passport, or else he is not permitted to keep an employee’s passport. Labour & Employment. 15-minute UAE employment advice session. We don't encourage any spam posts here. Financial Dues after Resignation in the UAE. Please follow our posting guidelines. In redundancy, there is no such compensation other than gratuity pay and/or notice period compensation. Buy Now & Pay Later! As serving a notice period is required under UAE labour law, it's important to give a resignation letter to evidence a date from which you will be serving your notice. Unlimited contract: This type of contract doesn’t involve any duration. Similarly, your employer cannot force you to resign, either. When the worker resigns, it is not legally mandatory for the employer to reject/accept the resignation. Under the UAE Labour Law, repatriation expenses means Travel Ticket (air ticket) as per the employees contract for himself and the family and also costs of the luggage. This decision is yours to make. Therefore, your contractual notice period (up to a maximum of three months) starts from this date. This law is specific to the cost of a travelling ticket for the employee. Non- nationals may not engage in any work within the State except in accordance with the conditions stipulated in this Law and its executive orders. Check: What is Article 120 of the UAE Labor Law? It important for a worker to have knowledge of labor laws and regulations. Article 113. UAE Labour Law which contain the rights of each and every person who is residing or working in any state of Emirates under UAE Law and it is not allowed for anyone to … Other costs such as shipping or family repatriation are also legally payable if agreed upon in the labour contract or as per contractual company policies. These cookies are used to improve your experience and provide more personalized service to you. We’ll send you latest news updates through the day. How to renew an Indian Passport in Dubai? 12/1986 dated 29/10/1986, and . One has to check the terms and conditions of the gratuity calculation in order to verify any errors made by the respective company. Q: I am in my probation period. Amended by. But there will be a probation period of 1 to 3 months upon the end of the contract. The UAE labor resignation laws provide transparent instructions on employee rights. Federal Law no. The employee’s passport should be surrendered to the employee after visa cancellation process. Minister of Labour’s decree ( 765 ) of 2015 on Rules and Conditions for the Termination of Employment Relations The Minister of Labour, Upon consulting Federal Law ( 1 ) of 1972 on the mandates of ministries and the powers granted to ministers. #3 – Serving the notice period is mandatory. Despite having clear guidelines on employee rights in the UAE, it is usual for residents to be forced to accept less than what they're owed in case of resignation or termination. Here are your labour rights, Labour Law: 7 things about your annual leave, Saudi Arabia suspends flights over new COVID-19 strain, Riyadh's King Abdulaziz Bus Project to start operations, UAE leaders send condolences on death of Kuwait Sheikh, Rocket attack targets US Embassy Baghdad's Green Zone, United crush Leeds to send Premier League title warning. In the pre-internet days, buying something meant a lot of planning and saving money to be able to buy it. Register to read and get full access to gulfnews.com, By clicking below to sign up, you're agreeing to our Services offered by the Ministry of Labour, UAE. According to Article 125 of the UAE Labour Law, an employee upon end of contract should be given an end-of-service certificate detailing start date, end date and nature of work performed during the period of employment. Corresponding to 6 Jumâdâ al – Akhir 1400 H . There are only two situations wherein an employee can resign without notice as per Section 14 of the UAE Labor Law – if the employer has failed to serve his obligation or if the employee was assaulted by the employer or his legal representatives. 15/1985 dated 15/12/1985, and . Only federal authorities or competent courts are permitted to keep the employee’s passport. No time is your employer rights and responsibilities send you latest news through... 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